In this episode, James Currier dives into the Network Effects Masterclass, exploring various types of network effects. He discusses personal utility, direct, marketplace, platform, expertise, and data network effects, with examples from Bit Torrent and Skype. He also explores social or human, tribal, and hub and spoke network effects, emphasizing their cultural and business influence.
Unlock the NFX map to understand how each network effect works — in episode 3 of the Network Effects Masterclass, General Partner James Currier will review the 16 types of network effects and how they reinforce each other in powerful ways. Learn to analyze the NFX map to determine how to engineer sustained, long-term growth into your startup.
This is an abridged version of episode 3 from The Network Effects Masterclass, curated for audio and listening on the go. For the full video experience, transcripts, and recommended reading, join the free Network Effects Masterclass at - NFX.com/masterclass.
(0:00) Introduction to the episode and the Network Effects Masterclass
(1:17) Overview of different types of network effects
(4:00) Deep dive into personal utility and direct network effects with examples
(6:06) Examination of marketplace and platform network effects
(10:29) Understanding expertise and data network effects
(14:09) Tech performance as a network effect: Bit Torrent and Skype as examples
(15:16) Social or human network effects: Language as the first example
(17:38) Tribal network effect and its influence on business and product design
(19:32) The cultural aspect of the bandwagon effect
(20:47) Exploration of the hub and spoke network effect
(22:58) The journey and excitement in reinforcing network effects
